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Start Appreciating your Depreciation!

 

 

Promoted by NBTax

Property Tax Depreciation is something we often don’t appreciate or more commonly just don’t understand at all. As a property investor in Australia’s growing property market I’ve recently learnt there is no greater time to further educate ourselves and better our understanding of how Property Tax Depreciation can boost our financial position potentially allowing unexpected growth – and Napier & Blakeley’s NBtax makes sure all the boxes are ticked!

A few years ago Property Tax Depreciation schedules were something that my accountant prepared for my investment properties. I didn’t know what it was, how it worked, or the true value of it. I just knew it helped me to negatively gear my property and that my accountant looked after it.  

Over the past few years I’ve been lucky enough to continuously grow my property portfolio and with interest rates where they are, I’ve started to pay more attention to what’s involved when it comes to my property investment returns. 

The first thing I learnt was Property Tax Depreciation actually plays a very big part in maximizing my return or more importantly minimizing my taxable income. AND, unbeknown to me, my accountant isn’t the right person to calculate my property depreciation. It took some reading and investigating but I learnt exactly how depreciation should be calculated. It became evident that my ignorance had been costing me.

Property tax depreciation is complicated. It’s a combination of two deductions or allowances. Capital Allowances or otherwise known as depreciation allowances – these are all the items within your property such as air conditioners, heaters, white goods, ovens, stove tops etc. Now ‘technically’ your accountant can calculate the opening depreciation value of these items because we can estimate their retail cost and then apply the depreciation rates. But will they estimate correctly? It’s a risk – unless you know exactly how much they cost, all the costs associated and factor in your purchase price of the property itself!

The other tricky part of Property Tax Depreciation are the Building Allowances which form the second part to the total depreciation calculations of your investment property. Building Allowances is essentially the depreciation of the structure of your property. The walls, the ceiling, the actual building. This is where your accountant quite probably doesn’t have the skills.  To properly assess the Building Allowances of your property you need a skilled Quantity Surveyor to analyse your entire property. Only an experienced Quantity Surveyor will understand the construction elements within your property, they quantify everything from the concrete under your feet, to the plaster and timber batons in your walls. The Trusses in your ceiling and the metal or tile roof you might have over your head. An experienced Quantity Surveyor is the right professional to assess the cost and value of these things, and then apply the depreciation rates – and more importantly to ensure you get the best depreciation available which should enable you to ensure you minimize your taxable income.

Not knowing the true depreciable value of your property asset could mean you’re missing out on tens, if not possibly hundreds of thousands of dollars of depreciation over the life of your investment. That’s money you’re missing out on!

One of the problems investors face is finding the right property tax depreciation specialist. When you hit up Google with relevant searches to find the right property tax depreciation specialist, there are all sorts of sites offering depreciation schedules. Some super cheap, some not so – to ensure you pick the right specialist you need to know that your property will be thoroughly inspected by the right professional and that your schedule will be completed by Quantity Surveyors with the know-how. You definitely do not want a depreciation schedule that’s calculated automatically based purely on the date of purchase and purchase price of your property. This would be a decision that could cost you thousands – and you wouldn’t even know it.

In the mid 1980’s, before there was even the internet available to us all, residential property depreciation was introduced to the Australian taxation system, there was but one specialist consultant at the time, Napier & Blakeley. 30 years on Napier & Blakeley are still the Property Tax Depreciation market leaders. With such a wealth of knowledge covering the entire country – there’s only one company I will place my faith in when it comes to my property depreciation schedules.

Now, after more than 3 decades, Napier & Blakeley wanted to make the process of understanding the importance of and obtaining a Property Tax Depreciation schedule easier than ever before.

So, just this July, Napier & Blakeley introduced NBtax.com.au - a complete cloud based platform that is connected with the Napier & Blakeley national network of actual Quantity Surveyors. You can now request your residential property depreciation schedule 100% online within just a few minutes, and know that there is an experienced Quantity Surveyor at the other end receiving your request, analyzing your property and completing your schedule.

It’s clear, NBtax by Napier & Blakeley takes Property Tax Depreciation seriously – they understand the importance of time, they don’t try and sell you anything but knowledge. Knowledge that will give you the power to make the right choice. When it comes to NBtax, their goals are simple.
Educate investors, help cut their taxable income, and put more money in their pocket.  

 

 

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About the Blogger

NBTax

NBTax

Taking the depression out of depreciation!

There’s one area even experienced property investors can struggle with – property tax depreciation.

NBtax was created by Napier & Blakeley with one purpose. To make the complicated uncomplicated. To simplify property tax depreciation for investors big and small alike, making it an easily obtained service.

Anyone who owns an investment property in Australia, if that property generates a declared income then property tax depreciation is most likely applicable.

NBtax wants to educate all property investors, and simplify the process of obtaining a property depreciation schedule, so you can spend less time worrying about your investment and more time enjoying its benefits.

Napier & Blakeley, the parent company of NBtax were the first to produce property tax depreciation schedules in 1985 and have continued to be the market leaders.

Napier & Blakeley is an independent and privately owned, international, integrated, property services consulting organisation.

Cost. Risk. Return. This reflects our clients’ mandate. Put simply, our goal is to make property more valuable by minimising cost and risk and importantly maximising potential return.  

After 30 years it is still a fact that investors are not aware of the clear benefits obtainable by using a professionally produced property tax depreciation schedule.

This is why NBtax was created – with 30 years of expertise, NBtax is perfectly positioned to produce a compliant and maximised property tax depreciation schedule to ensure your returns can be maximised.

Supported by the national network of Napier & Blakeley, NBtax can service any property anywhere in the country giving you the ease of mind to know we’re here for you. Anywhere, Anytime.

Visit www.nbtax.com.au today to find out how we can help you maximise your property investment return.

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podcast

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  ["title"]=>
  string(51) "Boost for investors as app sets up off-site bidding"
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  string(55) "boost-for-investors-as-new-app-sets-up-off-site-bidding"
  ["introtext"]=>
  string(144) "

Property investors are now able to identify and bid on auctions remotely using a new live-streaming functionality launched by Gavl.

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Called “Request an Auction”, the new functionality enables users to watch and bid on any Sydney or Melbourne auction remotely.

Through Gavl, prospective buyers are now able to register to bid on their preferred auction. The platform will obtain permission from the listing agent and confirm within 48 hours.

Vendors can also request to have their auctions broadcast to a larger buyer audience.

Co-founder Joel Smith said that auctions streamed on Gavl attract 47 per cent more viewers than traditional ones.

He said that Request an Auction will be valuable for remote buyers.

“Buyers are able to have Gavl attend any auction they nominate, so they will never have to miss out on an opportunity due to logistical complications in physically attending the auction.

“Vendors, too, have the opportunity to directly book an auction with us, so they can open up their event to buyers all around the world. With more potential buyers, they’re giving their property the chance to receive more bids and maximise their sales result.”

Mr Smith said that prior to the Request an Auction app, buyers were limited to what they could achieve through the Gavl technology.

Gavl is a live-streaming and bidding platform for real estate auctions.

Mr Smith said that it has streamed more than 6,000 auctions, which have achieved 3.5 million views from 50 countries.

Gavl’s Request an Auction function is currently being offered in Melbourne and Sydney only.

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Boost for investors as app sets up off-site bidding
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  ["title"]=>
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Having to split her time between Hong Kong and her original base of Sydney has not slowed Julia Tita’s goal of building a high-performance Australian property portfolio. Instead the resulting alterations to her strategy have positively impacted her investing success.

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Having recently purchased her 6th property, Julia joins host Tim Neary to discuss her journey, share her ups and downs over the years, and reveal her thoughts on why some properties are better than others.

Julia also explains why she no longer makes a move without the help of a buyer’s agent, why working with a strong team of specialists is extremely important and discloses her long-term property ambitions.

If you like this episode, show your support by rating us or leaving a review on iTunes (The Smart Property Investment Show) and by following Smart Property Investment on social media: FacebookTwitter and LinkedIn.

If you have any questions about what you heard today, any topics of interest you have in mind, or if you’d like to lend your voice to the show, email [email protected] for more insights!

RELATED AREAS OF INTEREST:

Why is Australian property so unaffordable?
Brisbane infrastructure attracts international interest
Going global
Australia desirable to foreign investors

AREAS MENTIONED:

Eagleby
Charters Towers
Townsville
Brisbane
Paddington
Sydney
Orange
Melbourne 
Glen Iris
Bondi

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How a move to Hong Kong impacted Julia’s Australian property goals
object(stdClass)#1192 (52) {
  ["id"]=>
  string(5) "18159"
  ["title"]=>
  string(88) "‘Common’ referrer practice of being paid on both sides of the fence coming to an end"
  ["alias"]=>
  string(82) "common-referrer-practice-of-being-paid-on-both-sides-of-the-fence-coming-to-an-end"
  ["introtext"]=>
  string(246) "

The practice of property investment firms sharing undisclosed kickbacks among the supply chain involved in development sales will be outlawed in NSW on 1 July this year under the Real Estate Reform being handed down by regulators in NSW.

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Property commentator and valuer, Suburbanite’s Anna Porter, said the reform will address conflicts of interest.

She said they arise when a mortgage broker, accountant or financial planner receives part of the commission from the property firm, who receive their fees from the developer or seller.

“This puts the broker into a position by which they are being paid on both sides of the fence,” she said.

“Until now this has been a grey area and there was nothing stopping this practice.” 

Ms Porter said this has been a common practice in the industry.

"Some well-known mortgage broking firms openly admit to receiving $5,000–$10,000 per referral in their pocket.”

She also said this process has been going on for decades.

"Property investment firms commonly pass some of their commission on to the mortgage broker, accountant or financial planner as a reward to them for passing on the referral. This means that many brokers or financial service providers are making significant amounts of money just to refer on to a property firm, often totalling hundreds of thousands of dollars a year," Anna Porter said.

Ms Porter said the Property, Stock and Business Agents Amendment (Property Industry Reform) Bill 2017 will be in force from July this year, and will prohibit this practice unless the broker or referring partner also holds a real estate industry license.

"Under the new laws, if the broker takes a referral fee from the property firm, they will have to be a licensed real estate agent and also hold a corporation’s license,” she said. 

“Subsequently, every transaction that they receive a referral fee from, they will be putting their license up against the transaction and taking full liability for the conduct, practices and outcome of that transaction, even if they have little to do with the transaction; they are a party to it financially and therefore take as much risk as everyone else in the transaction.”

Mr Porter said where a referrer holds a real estate license, and receives a part of the sale commission, they may find themselves in breach of the ethical requirements under the act.

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